"The Magic of Compounding – Your Most Powerful Wealth Creator"

📘 Day 1 Lesson – Rise Daily With One Financial Lesson

🔍 The Power of Compounding – How Time Turns Money Into Wealth

“Compounding is the eighth wonder of the world. He who understands it, earns it. He who doesn't, pays it.” – Albert Einstein

📊 What is Compounding?

Compounding is when your money earns returns, and then those returns also start earning returns. Over time, this creates a snowball effect where your wealth grows exponentially — not just linearly.

🧪 Case Study: Ramesh vs Suresh

Ramesh starts investing ₹5,000 per month at age 25 and stops at age 35 (invested only for 10 years).
Suresh starts late — invests ₹5,000 per month from age 35 to 55 (20 years).

Investor	Total Invested	Investment Period	Wealth at 60 (12% p.a.)
Ramesh	₹6,00,000	25 to 35	₹2.75 Crores
Suresh	₹12,00,000	35 to 55	₹1.65 Crores

✅ Despite investing only half the money, Ramesh ends up wealthier — because time did the heavy lifting!

⏳ Rule of 72 – The Doubling Trick

To estimate how quickly your money will double:

72 ÷ Interest Rate = Years to Double
Example: At 12% return → 72 ÷ 12 = 6 years to double your investment.

🎯 Key Takeaways for Investors

• Start investing as early as possible – even small amounts matter.
• Be consistent – SIPs (Systematic Investment Plans) are great tools.
• Let your money grow uninterrupted for long-term compounding.

💡 Expert Tip: Never interrupt compounding by withdrawing your investments too early. Give it time and patience.

📅 Tomorrow in Investors Pathshala – Day 2:

💥 Smart Asset Allocation for Long-Term Wealth?

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